What happens when companies become too AI-pilled?

Box founder Aaron Levie has coined the term "AI psychosis" to describe a troubling pattern in corporate America: the executives making decisions about replacing workers with AI are often the least qualified to understand what those workers actually do. Levie pointed out this disconnect as a key example of what happens when companies adopt AI technology without fully grasping its implications.

The consequences of this AI-driven approach are already materializing. Project management platform ClickUp recently announced plans to cut 22% of its workforce, with AI agents taking over those roles. Meanwhile, tech industry layoffs in 2026 have already nearly matched the total number from all of 2025, suggesting a significant shift toward automation-driven workforce reductions.

On the consumer side, DuckDuckGo is experiencing a surge in installations, with users reportedly frustrated by Google's push to integrate AI into search results. Many users are seeking alternatives that simply provide links rather than AI-generated summaries. This backlash indicates a growing divide between companies racing to implement AI and their customers who may prefer traditional approaches.

TechCrunch's Equity podcast, hosted by Kirsten Korosec, Anthony Ha, and Sean O'Kane, explored these tensions in detail, discussing how both AI enthusiasts and skeptics have valid points. The episode also covered Waymo's new robotaxi launching in additional markets, along with several other deals in the AI and tech space involving companies like OpenRouter, Snowflake, and Stord.